Budget Report 2008: Treading Carefully

On the face of it, the libraries that reported back to us in the annual LJ Budget Survey are doing reasonably well, continuing the modest growth we reported last year ("Keeping Pace," LJ 1/07, p. 55–57). However, a closer look suggests that budget increases may not go far enough. While 81% of all respondents projected an increase in total operating budgets, only 68% said they expected materials funding to go up.

Still, the core numbers look stable, even though growth in revenue doesn't mean a library has become rich, just as some facing slowdowns remain well funded. For instance, per capita funding increased 7.8% from FY06 to FY07, while an increase of 4.2% was projected for FY08. That would put average per capita funding at $40.49, continuing steady progress.

About 14% of operating budgets go to library materials, with an average of $5.22 per capita, while 63% covers personnel costs, relatively consistent with past years. Mean per capita circulation rose 3.1%, to 8.66. Libraries are open an average of 60 hours a week, up slightly.

Looking below those relatively stable numbers, however, reveals challenges, especially when it comes to technology. Nearly three-quarters (73%) of respondents reported that they have an inadequate number of workstations at least once a week, and almost half of the sample said the workstation challenge recurs daily. Some one-third of respondents said they experience daily inadequate bandwidth.

Although responding libraries cited public access computing as a top priority after books and materials, the surveyed libraries spent, as others have in the past, only 2% of their operating budgets to sustain or improve public access computing. For many, that's clearly not enough. Not only must libraries supply access for patrons using computers for everything from reference to Facebook, but last year's budget report, drawing on new research (see "Drafted: I Want You To Deliver E-Government," LJ 8/06 p. 34), mentioned the library community's new awareness of the hurdles of supporting online access to job applications, unemployment claims, Medicaid registration, and emergency benefits.

Indeed, on December 11, at a hearing on e-government held by the U.S. Senate Committee on Homeland Security and Governmental Affairs, the American Library Association (ALA) reminded federal officials that libraries need new resources to supply the bandwidth, equipment, and staffing to support e-government. Tara Olivero of ALA's Washington Office told LJ that Section 213 of the E-Government Act specifies that the federal Office of Management and Budget must collaborate with and bolster public libraries in their e-government efforts.

Because libraries' financial well-being is linked to the larger economy, those in states with once-hot housing markets are braced for lower local property tax collections. Such trends have ripples in the economies of several states; the National Conference of State Legislatures (NCSL) in December announced that 24 states and Puerto Rico had reported that state revenues were hurt by the housing sector slump.

But the picture is hardly crystalline. For instance, the NCSL reported that 11 states had revised their FY08 revenue forecast downward, while another 11 had revised the forecast upward. While state spending plans appear to be stable in the early months of FY08, a recession, if it hits, could be painful.

Even though most library funding is local, state laws constrain libraries in states with tax caps, such as Illinois and Wisconsin, and new tax cap legislation threatens libraries in Florida, where a vote will be held January 29 (see Front Desk, p. 15). Likewise, Indiana "is in the midst of a property tax revolt," one Indiana librarian reported. "We are hunkered down, letting barbs be aimed at city, county, and state."

But there is some good news, too. In generally well-funded Ohio, many libraries have been struggling, as state support was frozen from 2002 through the end of 2007. Beginning this month, however, the state's public libraries will be funded through 2.22% of Ohio's general tax revenue, a broader base than the fluctuating personal income tax, which funded libraries previously. Librarians expect modest increases initially.

Though libraries serve multiple functions in their communities, it turns out that the lending of books and AV materials remains the most vital, according to a majority of our respondents. Computers/Internet access ranked second among respondents as a whole, especially among the smallest libraries, those serving communities under 10,000 population, as well as libraries in the Southeast.

Other highly ranked services include adult/children's programming, reference resources/services, community gathering space, and study or work space. Asked to write in other valuable services, respondents listed adult education, art displays, literacy, shut-in service, and fax service.

For the second year, we asked respondents how they're coping with challenges and what they'd do with an unexpected budget boost of 10%. Some libraries, where property values or millage votes supply a steady stream of funds, are in good shape.

However, many libraries wrote that rising health-care and energy costs cut into the basics of providing sufficient hours and materials. Some libraries have conducted energy audits; others have pushed carpooling. Some building plans have been pushed back. Both materials and personnel budgets have taken a hit; numerous libraries have frozen positions or rely on part-time help to save on benefits. Many directors know their staffers deserve better compensation, and several said that a budget boost would reward long-suffering employees.

Keeping up with technology—moving to an advanced integrated library systems or downloadable media—remains a challenge, too. Some librarians are investing in self-checkout stations in order to run their facilities with fewer staff. Others are putting new emphasis into private fundraising.

Clearly, the depth of library service varies significantly. "Our library is currently adequately funded (but don't tell anyone, please!)," wrote a representative of one library that nonetheless has a relatively modest budget. However, nearly every other library would like to give more of what they know they can offer.

Carnegie Public Library, Big Timber, MT

$99,000, up 3.2% The library would like a third staffer, who would work on programs. Per capita: $27.

Emma Burnham Public Library, Frederick, SD

$13,600, up 9.5% Increasing heating costs cut into salaries and hours, which are 16 per week, serving a population of just 255. Per capita: $53.

Haskell County Library, TX

$60,932, up 2.2% The library is tracking printing costs more closely and would like a new computer. Per capita: $11.

Nicholas County Public Library, KY

$107,000, up .2% More is spent on materials than personnel, and the wish list includes a faster DSL connection. Per capita: $16.

Windom Public Library, MN

$171,500, up 3.8% Shifting librarians to part-time roles has saved money. Per capita: $34.

Haddonfield Public Library, NJ

$970,481, up 3.6% A new state tax cap means restrictions on revenue; the library would like more e-resources. Per capita: $83.

Lancaster Community Library, VA

$515,000, up 2.5% This nonprofit corporation is trying harder to train board members in fundraising. Per capita: $45.

Morton Grove Public Library, IL

$2.9 million, up 2.7% More than half the staffers in this well-funded library have MLS degrees. Per capita: $128.

Rehoboth Beach Public Library, DE

$278,669, up 3% The library gets nearly 20% of its budget from Friends, fines, and fees, but energy costs and health benefits still strain. Per capita: $24.

Burlington Public Library, IA

$1.8 million, up 6.3% A geothermal heating/cooling system in its new building will save money; an energy audit will follow. Per capita: $49.

Pottstown Public Library, PA

$561,995, down .3% The library would like to be funded at the state average and hire more professional staff. Per capita: $14.

Preble County District Library, OH

$1.2 million, up 3.1% A lack of space to meet computer demand inspired the library to seek a laptop grant. Per capita: $31.

Smyrna Public Library, GA

$877,776, up 3% The slowdown in the local housing market means conservative projections for FY09. Per capita: about $18.50.

Azusa City Library, CA

$1.3 million, up 1.7% The library would love funding to rewire the building and also add wireless service. Per capita: $27.

Decatur Public Library, IL

$4.8 million, up 9% Energy expenses and salary increases tax the budget, so the library seeks grants for programming and more free speakers and artists. Per capita: $59.

Lapeer District Library, MI

$2.1 million, up 10.7% Revenue slowdowns plus the "rising cost of everything" have driven the library to turn thermostats down and try "new (but free!) things." Per capita: $33.

Mishawaka-Penn-Harris Public Library, IN

$4.7 million, down 1.5% Late tax receipts as state tax laws change mean the library has had to borrow to stay open. Per capita: $55.

Williamsburg Regional Library, VA

$6.4 million, up 2% Despite healthy support, a declining housing market poses challenges and will affect materials and staffing. Per capita: $91.50.

Will Rogers Library, Claremore, OK

$445,925, up 1.5% With only six FTE at this rural facility, the staff is stretched "to the max." Per capita: barely $5.50.

Ann Arbor District Library, MI

$13.5 million, up 4.7% Even with relatively healthy revenues, the library now offers a Health Savings Account to lower insurance costs. Per capita: $82.

Carrollton Public Library, TX

$4.7 million, unchanged A budget boost would allow further replacement of videos with DVDs and audios with CDs. Per capita: $39.

Gail Borden Public Library, IL

$11.8 million, up 15% Annexations and new construction have lifted revenue, but a first branch will come online only in 2009, and others would be tough to fund. Per capita: $96.

Northeast Regional Library, Corinth, MS

$964,133, up 7.4% Budget straits make it tough to hire professionals or to pay parapros better wages. Per capita: $9.50.

Osceola Library System, FL

$9.2 million, up 10.2% An upcoming revenue increase is still less than the library had two years ago, as it faces a fiscal freeze and an extension of the schedule for capital improvements. Per capita: $38.

Carnegie Library of Pittsburgh, PA

$24.7 million, up 7% Competitive salaries pose a chief hurdle, and more funds would go to improving them and hours. Per capita: $55.

Dakota County Library System, MN

$10.9 million, up 2.9% Fines and fees help support materials; a boost might establish books-by-mail service to replace a rural bookmobile. Per capita: $30.

East Baton Rouge Parish Library, LA

$29.1 million, up 21.3% The library's apparent budget boost isn't matched by materials or salaries, given that the lion's share is for pay-as-you-go construction. More money would buy a new ILS. Per capita: $71.

Omaha Public Library, NE

$11.4 million, up .5% The library, once top-heavy with MLS-holders, has diversified its staff; private support will be sought for a needed budget boost. Per capita: $23.

Toledo-Lucas County Public Library, OH

$40.2 million, up 14.2% Rising energy costs require greater efficiencies. A boost would go to AV and public access computing. Per capita: $90.

Atlanta–Fulton County Public Library, GA

$35.2 million, up 8.2% A major materials budget increase challenges library courier service and branch staffing. Per capita: $36.

Austin Public Library, TX

$23.5 million, up 11.2% Rising construction costs mean furniture falls into the operating budget. A boost would go to security and materials. Per capita: $32.50.

Cuyahoga County Public Library, OH

$67.1 million, down 3.7% The library wants a regional fund for capital projects; homework centers, computer labs, and early childhood areas would all benefit from more money. Per capita: $106.

DeKalb Public Library, GA

$16.1 million, up 2.5% Revenue slows as the system needs to expand. More AV and downloadable materials top the wish list. Per capita: $23.

Milwaukee Public Library, WI

$24.6 million, down 1.1% Cuts in state funding to cities impact the library, which recently ended delivery of AV holds to other branches or the suburbs. Per capita: $41.50.

Brooklyn Public Library, NY

$103.3 million, unchanged The library has new stable funding from the city and is working more collaboratively with the other two city systems on budget issues. Per capita: $42.

Fairfax County Public Library, VA

$33.5 million, down .8% In the face of revenue slowdowns, positions stand open. A boost would go to the materials budget. Per capita: $31.

Sacramento Public Library, CA

$36.5 million, up 1% A slowdown in city sales tax and revenues and the dropping local housing market pose concerns. Per capita: $26.

San Antonio Public Library, TX

$40.7 million, up 19.8% With new funding to address technology needs, the library still must see to deferred maintenance. Per capita: $27.